PURCHASING REAL ESTATE IN VIETNAM – HOW TO ACQUIRE ESSENTIAL INFORMATION?

Generally, when approaching a properties in Vietnam, foreign investors might easily collect some generic information as stipulated by Law on Real estate 2014, they are:

- Type and location of the real estate;

- Information about planning related to the real estate;

- Scale, characteristics, utilities and quality of the real estate; information about each utility and general use area if the real estate is a mixed-use building or an apartment building.

- Actual conditions of constructions or services related to the real estate;

- Documents on ownership of buildings and land and documents related to real estate construction; guarantee agreement, written permission for off-the-plan building sale or lease purchase transactions granted by competent agencies;

- Restrictions on ownership of or rights to use real estate (if any);

- Real estate sold, transfer, lease, sublease, lease purchase price.

Various information about certain real estate could be found in public. A cautious purchaser might invest a lot of time and effort in analyzing and evaluating the investment return rate (IRR) or revenue and turnover. Moreover, a prudent purchaser also understand that the public information is only used for reference. What they actually need is valuable information from real estate experts. Such information is unique and distinguished depend on the ability and experiences of the expert. For example:

From a local real estate broker:

- quasi transactions in the same areas;

- history of transaction related to the property;

- analyze and comment on commercial documents;

- local practice in a real estate transaction;

- the advantages and disadvantages of property;

From a local real estate lawyer:

- evaluate the legality of property, project or seller, investor;

- explain the relevant state policy in the near future;

- consult on how to legally perform the transaction?

- provide consultancies on paper works;

- provide tips

“A wise investor always ask for consultancies from brokers and lawyers prior decisions on property matters” 

For conclusion, there are many ways to accquire information to purchase properties in Vietnam. The more information, the more prudent decisions and actions. Among all, the two most essential factors are price and legality. It will be a good deal if purchaser can handle such factors wisely.

TIPS FOR FOREIGNERS SUCCESSFULLY PURCHASING HOUSES IN VIETNAM

 

Law on Housing 2014 of Vietnam provide new provisions to facilitate foreigners in purchasing houses in Vietnam. Foreigners is recommended to consider the 05 major changes mentioned below prior entering into the transaction: Y ĐỔI LỚN

Conditions: Foreign individuals who are allowed to enter Vietnam

Noted: Foreign individuals must reside in Vietnam for more than 01 year.

Type of Housing: all types including apartment and house

Noted: Before only applied to apartment

Limitation of Housing: No limitation for foreign individual. However, all foreigners may not buy, rent and purchase, receive, inherit and own more than 30% of apartments in an apartment building; or more than 250 houses regarding separate houses including villas, row houses in an area whose population is equivalent to a ward-administrative division. 

Noted: Before, a foreigner is only allowed to purchase 01 apartment in Vietnam

Objectives of Housing: Foreign individuals might rent, purchase, inherit or mortgage

Noted: Before, foreign individual may only purchase houses for residence.

Term of Ownership: The foreign individuals are eligible for the homeownership as agreed in agreements on housing sale, lease purchase, gifting, or inheritance for not more than 50 years, from the day on which they are granted the Certificate and they may be also granted extension up to 70 years.

If a foreign individual marries to a Vietnamese citizen or an oversea Vietnamese, he/she qualifies for stable and long-term homeownership and has all rights of homeowner similarly to Vietnamese citizens

Content	Before 01 July 2015	After 01 July 2015
Conditions for Foreign individuals	Reside in Vietnam for more than 01 year	Allowed to enter into Vietnam
Type of Housing	Apartment	House and Apartment
Number of Housing	01 Apartment	No limitation for an individual No more than 30% of total apartment in a building
Term of Ownership	50	50 (can be extended to 70)
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